Rate of royalty
55 Rate of royalty
(1) The percentage of net value specified in amended section 10(1) applies in relation to:
a royalty year that commences on or after 1 July 2010; and
(b) a period that commences on or after 1 July 2010 in a transitional royalty year.
(2) The percentage of net value specified in section 10(1), as in force immediately before the commencement day, applies in relation to:
a royalty year that ends before 1 July 2010; and
(b) a period that ends before 1 July 2010 in a transitional royalty year.
Example of application of subsections (1)(b) and (2)(b)
If a transitional royalty year commences on 1 January 2010, the percentage of the net value for the period 1 January 2010 to 30 June 2010 is 18% and the percentage of the net value for the period 1 July 2010 to 31 December 2010 is 20%.
(3) For calculating the net value under amended section 10(2) in relation to each transitional period in a transitional royalty year, the amount of each element of the formula must be apportioned between the transitional periods:
(a) as agreed between the royalty payer and Secretary on or before 31 December 2010; or
(b) in the absence of an agreement – as determined by the Secretary.
(4) To avoid doubt, an apportionment under subsection (3) may apportion the whole of an amount to one of the transitional periods and none of the amount to the other transitional period.
Part IX Transitional matters for Revenue Legislation Amendment Act 2013
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